BankUnited Financial, FDIC settlement gets OK from court; disclosure statement hearing July 13

By Lisa Kerner

Charlotte, N.C., July 6 - BankUnited Financial Corp.'s settlement with the Federal Deposit Insurance Corp. was approved by the U.S. Bankruptcy Court for the Southern District of Florida on Wednesday, according to an attorney familiar with the case.

The settlement agreement between BankUnited and the FDIC in its capacity as receiver of BankUnited (FDIC-R) is significant for creditors and bondholders because it would resolves the FDIC-R's asserted $1.467 billion capital maintenance claim, a prior court filing said.

Without the resolution, or if the asserted amount would have been allowed in full, any distribution to holders of other allowed claims, or the possibility of any recovery for unsecured creditors, would have been eliminated.

While the settlement compromises and resolves most issues, some issues remain pending among the debtors, the committee and the FDIC.

Competing plans filed

As previously reported, the committee filed in April a plan of liquidation under which all of BankUnited's assets will vest in Liquidating BankUnited, which will monetize the assets, continue litigation and make distributions to creditors.

The hearing to approve the committee's disclosure statement was rescheduled to July 13 to allow changes to be made to the plan to incorporate an FDIC settlement.

BankUnited filed its own plan in November.

BankUnited Financial, the holding company for BankUnited FSB, filed for bankruptcy on May 22, 2009. The company is based in Coral Gables, Fla. The Chapter 11 case number is 09-19940.

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